Bullish sentiment rules
JPMorgan Chase analysts have an optimistic outlook on the semiconductor industry heading into 2025, with year-on-year sales growth projected between 10% and 12%. This is expected to outpace the automotive and other industrial sectors thanks to ongoing demand for high-end artificial intelligence chips.
The incredible returns equity investors have seen in 2024, and over the past couple months for that matter, have been incredible.
For more than two years, the bulls have been running wild on Wall Street, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all ascending to multiple record-closing highs in 2024. While there have been pockets of strength in most sectors and industries, the stock market's trillion-dollar businesses have shouldered a sizable portion of this rally.
What if Santa Claus named his reindeer after stocks with market caps of $1 trillion or more? We wouldn't have, "Now, Dasher!
Up until the market opened on Friday, Dec. 13, America was home to seven technology companies worth $1 trillion or more:
Stocks like PCAR, ZTS, AVGO and TGLS recently announced dividend hikes.
I believe the initial AI boom is peaking, with mainstream beneficiaries already priced in. My focus is on the next phase. This future AI expansion requires unprecedented infrastructure. Many areas lack the capacity to support it, facing constraints in power, grid capacity, water resources, and available land for data centers. My investment thesis targets this resource bottleneck. Companies uniquely positioned to capitalize on these growing demands, offering both stability and long-term growth potential.
Technology has arguably been Wall Street's hottest sector in 2024. Rapid growth in emerging industries, such as artificial intelligence (AI), has fueled a massive rally, making this year one of the best for technology stocks in recent memory.
No chipmaker has benefited more from the rapid rise in artificial intelligence (AI) spending than Nvidia (NVDA -2.25%). The company's graphics processing units (GPUs) are essential for any company looking to develop and train large language models and build generative AI applications.
As of Dec. 13, 2024, three stocks in the information technology sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.
When it comes to public companies, insiders know best. Stock Strategist Andrew Rocco explains how several CEOs in the semiconductor industry echo the notion that growth will remain solid, driven by the AI boom.